All of the Following Are True About a Variable with a Negative

question 75

Multiple Choice

All of the following are true about a variable with a negative reduced cost in a maximization problem except

• A)its objective function coefficient must increase by that amount in order to enter the basis.
• B)it is at its simple lower bound.
• C)it has surplus resources.
• D)the objective function value will decrease by that value if the variable is increased by one unit.

---

Definitions:

Operating Income

Earnings before interest and taxes, representing the profit generated from a company's core business operations.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.

Income Tax Expense

The accounting term for income taxes due to federal, state, and local governments within a given fiscal period.

Cash Flow

The complete volume of cash flowing into and exiting a corporation, with a significant impact on its liquidity.